U.S dollar almost equal to Euro

[LoyceMobile]

In 2008, 1 euro was worth $1.57 at the peak. That's a 36% drop. Could this have anything to do with expanding the euro zone?

The first enlargements after the euro entered circulation were to states which joined the EU in 2004; namely Slovenia in 2007, followed by Cyprus and Malta in 2008, Slovakia in 2009, Estonia in 2011, Latvia in 2014, and Lithuania in 2015.

[1714170019]

1714170019

[1714170019]

1714170019

[1714170019]

1714170019

[so98nn]

and same thing is affecting the rest of countries considering dollar getting stronger and stronger (costly actually) so as to foreign reserves in other countries are downgrading. Rupee (INR) has also fallen badly recently which is directly hampering the import export business.

For example, in my laboratory when we used to get any ELISA kit from USA at cost of 500-600 bucks now costs me more than 800+ plus including its import duty and swift charges. Everything is so much hiked these days. You can’t get god dam kit cheap which we using for health services. Its bad and dollar rates can hamper anything.

[yhiaali3]

Europe is paying the price for standing by Ukraine. It can be said that this is a summary of the current economic situation in Europe. The sanctions imposed by the United States and NATO on Russia because of its war on Ukraine have led to severe suffering in the European economy. It is clear that the coming winter will be very harsh for Europe, especially in light of Forecasts of the weather will be very cold this year, the rise in fuel prices in advance caused the economic stagnation in the Eurozone.
The funny thing is that I read in some economic websites that: "Investors began to flee to the dollar as a "safe haven" and a reliable means of protection against inflation".
They will soon discover that they made a big mistake because the dollar's situation is not better and America is suffering from inflation as well.

[Uruhara]

the possibility that the euro's value or price will decline and be lower than the dollar is possible or has a fairly large degree of probability. because we see that Europe is in the midst of a crisis. spikes in the prices of necessities of life rose rapidly. due to the influence of the strengthening dollar and other factors as mentioned above.
then an economic recession could hit. but considering that Europe is a country that has a good long history. then I think they will look for and find a solution so that at least the euro exchange rate can rise again.

[stompix]

I think I understand from what you say that doing nothing is a lesser evil, not that the ECB is doing great.

Of course, ECB CAN'T do anything great right now.
The only choice is to brace for it for a few months and let the others take reckless measures to stabilize the international situation, let the Americans hike the rate, and suffer a bit from the ever-devaluating euro as you have no chance to act right now against the US and act only when the FED will be left out radical options, they can't go on this path forever.

I see now way the ECB will be able to return the parity to even some 1.1 right now without far more serious long and short-term consequences.

Do you see much future for the eurozone? They are now worse off than when the sovereign debt crisis was resolved with the "whatever it takes" of Draghi, then president of the ECB, with the difference that now much more has been printed and there is galloping inflation.

Neha, right now the situation is still far better.
Remember that during the last crisis the problem was not inflation, it was a complete collapse of demand, the EU went into near deflation because basically everything was crashing around, this is not the case now, things are still working (literally working, check employment) and this thing can't go over infinitely.

The main factor driving inflation is energy prices, but you can't have them high when the economy is crashing, this is impossible, with nobody working there is nobody using energy and you can see with oil,coal,copper, prices what fear of recession is doing.

In reality, the number 1 country where people want to emigrate and send their children is the USA. Then we can debate whether Europe has less inequality or better healthcare for the average citizen, but the US beats Europe on that.

Oh yeah, my bad, the crumbling EU is outranked in desirability by the crumbling US...
Anyhow, can you share the source for this? Usually, those polls break the EU in each country so of course, they are lower but overall they outrank the US.

In 2008, 1 euro was worth $1.57 at the peak. That's a 36% drop. Could this have anything to do with expanding the euro zone?

The first enlargements after the euro entered circulation were to states which joined the EU in 2004; namely Slovenia in 2007, followed by Cyprus and Malta in 2008, Slovakia in 2009, Estonia in 2011, Latvia in 2014, and Lithuania in 2015.

All of them have an economy of around ~450 billion, 1/3 that of Spain, they couldn't have influenced a thing even if they wanted to do.
The Norwegian krone was 0.20 in 2008, it's now 0.10
The Philippine peso was at 0.025 in 2008,  it's now 0.018,
The Canadian dollar was 1.04 in 2007, it's now 0.76,

It's not much the weakness of the Euro now, as the weakness of the US then and return to power now

[pooya87]

In reality, the number 1 country where people want to emigrate and send their children is the USA.

This just reminded me of some sad statistics: "Each day 12 children die from gun violence in America. Another 32 are shot and injured". In other words every 21 days there are more child casualties in USA compared to total number of child casualties in a decade inside war-zones like Syria (900 in 11 years!).
No wonder the reverse migration is on the rise.

[Poker Player]

This just reminded me of some sad statistics: "Each day 12 children die from gun violence in America. Another 32 are shot and injured". In other words every 21 days there are more child casualties in USA compared to total number of child casualties in a decade inside war-zones like Syria (900 in 11 years!).
No wonder the reverse migration is on the rise.

The USA has many bad things, such as a health care system for those who can afford it (with exceptions such as Medicare and Medicaid), exorbitant drug prices, an opioid problem, homeless people, etc.

It is usually a better place to live for someone with a high income than for someone who works at McDonald's and it also depends on where he lives, better in Nashville than in Detroit.

However, I don't know if I trust the statistics of that website very much, I think you have a confirmation bias that makes you look for data that confirms what you previously believe, like when you said that more than 1 million families went homeless in the UK in 4 months.

Oh yeah, my bad, the crumbling EU is outranked in desirability by the crumbling US...
Anyhow, can you share the source for this? Usually, those polls break the EU in each country so of course, they are lower but overall they outrank the US.

I saw it somewhere, but googling "number 1 country to emigrate to" the first thing that comes up is USA:

https://worldpopulationreview.com/country-rankings/immigration-by-country

Not all websites match, for example this one:

https://reachimmigration.com/en/blog/here-are-top-10-countries-to-migrate-to

But in this web where Germany, France and Holland appear in the top ten, it would be necessary to see if they consider that someone who goes from Bulgaria to Germany is "emigrating", which would be incorrect because there is free movement of people, and as for the aggregate EU that you comment the same: I hope that in the sum they do not count the people who go from Poland to Germany within the sum of emigrations.

[Stacaato]

We knew this was coming. Experts were predicting the Euro and USD parity since the inflation tightened its grip. Fed reserve’s rate hikes have boosted USD to a great extent and the Euro zone is still under the clutches of the ongoing energy crisis and recession fears.

[kaseygriffin]

I don't know if people see that happening, and it's getting worse as the economy shrinks because of the overwhelming social effects of it. I am not a fan of conspiracy theories, but they seem to have been and are being made and implemented in this life. Personally, I also see a process of decline and distrust from countries that were once the center of the world, and it seems that control backfires and causes polarization and balance to be gradually moved to the center of the world. . It is clear that the position of both the US and European countries is declining, and China's rise in the future is inevitable.

[pooya87]

However, I don't know if I trust the statistics of that website very much, I think you have a confirmation bias that makes you look for data that confirms what you previously believe

All statistics are inaccurate one way or another, the reality doesn't change though. The facts are:
- There are kids in US schools shooting each other
- Gun violence is the leading the leading cause of death among children in US, more than cancer.
- The gun violence in general is spread to all states and it is increasing each year
- The number of children with firearm injuries is also increasing every year.
According to CDC it used to be between 4 to 8 per day between 2006 and 2016, whether it is 44 or 21.8 per day now is just details.

It's the same with homelessness in UK. Whatever the real number is, the fact that it has been increasing rapidly this year doesn't change.

[Poker Player]

Generally agree with what you say. There are many things I don't like about the USA, but there are many people who want to emigrate to it, which indicates that there are many countries, for example in Central and South America, where they are worse off.

But on this I do not agree:

It's the same with homelessness in UK. Whatever the real number is, the fact that it has been increasing rapidly this year doesn't change.

The difference between 1 million families and 70,000 families is very significant, and those 70,000 families will soon be receiving benefits of one kind or another.

[trendcoin]

The FED is constantly raising interest rates. In this case, investors move their euro savings to the dollar (It's an inevitable end). If the US dollar continues to strengthen, it will be difficult to export American products to the global market. If the euro continues to weaken, it will be difficult to import energy products into the EU. As in everything else, balance is very important in this matter as well. Please let's not experience another global crisis. I'm so bored now.

[boris singer]

We know that one of the reasons why this can happen is because the level of Inflation in the US has now reached 9.1% and this is quite a big thing and even this is the highest level of Inflation I have ever felt for the US.
Their prices even in my currency are almost equal and have differed only slightly in the last few days.

[Mauser]

What are your thoughts? Will Euro's value fall lower than the U.S. Dollar? One thing is certain though, we're going to go through a tough time in the very near future.

Yes I think the US Dollar will be more valuable than the Euro in near future. Europe is screwed and I don't see our politicians reacting fast enough to offset all the negative shocks. The Russia Ukraine war is having negative consequences on the whole world economy, but Europe is hit the hardest. USA is pressuring European countries to buy energy outside of Europe, preferably from North America. Cheap Russian gas is what made European countries so competitive, now we have to buy gas for almost 3 times the usual price. On top of that is inflation still rising and the European central Bank is much slower to react than the FED. It might take years for Europe to recover from this.

[DrBeer]

Yes it’s very low compared to a decade ago or during the global finance crisis when it was around 1.50 EURUSD. I remember trading forex back then and the ratio was already around 1.30-1.40 or so. To have it reach parity is crazy.
However keep in mind back in 2015 or so it came close to parity also. Low was like $1.05 and people then assumed also that it would break parity but it never did.

The problem of the emergence of today's "parity" is more negative for the Euro than in 2015. Now, in connection with Russia's terrorist attack on Ukraine, such unpleasant facts for the German economy as the global monopolization of gas supplies for the industrial sector by a terrorist country against which sanctions have been imposed have "surfaced". Not the possibility of a quick solution to get out of the situation. And most importantly, gas supplies have become a mechanism for Russian terrorism against the EU, and especially Germany and France, which in turn are the economic locomotive of the EU. It is for this reason that it is quite logical to assume a recession, and not for 1 year, of the EU economy (read Germany), which by itself leads to a cheaper Euro. Nothing out of the ordinary, everything is logical. I hope in 3-4 years, the German economy, having stopped gas ties with terrorists, will begin to return to its previous indicators.

[Poker Player]

It seems that parity has acted as a support. Although it came down a bit, being a dollar more expensive than a euro for a few moments, the exchange rate has remained stuck in the 1 and a bit zone, being currently 1.01 according to google.

Some predicted that it would continue to fall until it reached $0.90 per €. We will see if they are right and this is a momentary stop or the decline is over, as the ECB has announced that it will raise interest rates, albeit timidly.

[pooya87]

It seems that parity has acted as a support. Although it came down a bit, being a dollar more expensive than a euro for a few moments, the exchange rate has remained stuck in the 1 and a bit zone, being currently 1.01 according to google.

Some predicted that it would continue to fall until it reached $0.90 per €. We will see if they are right and this is a momentary stop or the decline is over, as the ECB has announced that it will raise interest rates, albeit timidly.

Sleepy Joe's visit to West Asia (or as they like to call it Middle East) and his visits with the apartheid regimes seems to have temporarily calmed the energy market and even temporarily brought oil price below $100. That helps euro strengthen a little bit.

We have to see what the future holds for energy prices though. There are a couple of conflicts waiting to break out in oil rich regions such as Saudi Arabia that could shoot the price up again and euro could tank more if that happens.
Other than that all the global drama is currently slowing down, in my opinion.

[Ultegra134]

It seems that parity has acted as a support. Although it came down a bit, being a dollar more expensive than a euro for a few moments, the exchange rate has remained stuck in the 1 and a bit zone, being currently 1.01 according to google.

Some predicted that it would continue to fall until it reached $0.90 per €. We will see if they are right and this is a momentary stop or the decline is over, as the ECB has announced that it will raise interest rates, albeit timidly.

Sleepy Joe's visit to West Asia (or as they like to call it Middle East) and his visits with the apartheid regimes seems to have temporarily calmed the energy market and even temporarily brought oil price below $100. That helps euro strengthen a little bit.

We have to see what the future holds for energy prices though. There are a couple of conflicts waiting to break out in oil rich regions such as Saudi Arabia that could shoot the price up again and euro could tank more if that happens.
Other than that all the global drama is currently slowing down, in my opinion.

Although there was some kind of relief in the market, crude oil's price is increasing once again, trending at $100 for WTI and $104 for Brent oil as we speak. I've read a few predictions that it might fall in the upcoming months, but the EUR/USD rate of exchange isn't helping and certainly isn't going to recover back to pre-war levels anytime soon. The issue is, that inflation keeps soaring and there's no noticeable relief. Gas prices dropped from €2.50/liter of unleaded 95 petrol to €2.29/liter, which isn't a significant difference, the cost of fueling is still extravagant.

[sovie]

Although there was some kind of relief in the market, crude oil's price is increasing once again, trending at $100 for WTI and $104 for Brent oil as we speak. I've read a few predictions that it might fall in the upcoming months, but the EUR/USD rate of exchange isn't helping and certainly isn't going to recover back to pre-war levels anytime soon. The issue is, that inflation keeps soaring and there's no noticeable relief. Gas prices dropped from €2.50/liter of unleaded 95 petrol to €2.29/liter, which isn't a significant difference, the cost of fueling is still extravagant.

Inflation is hitting the world hard and this is the hard time for every county - this Euro and dollar coming together is an alarm for both the counties but i think now the time has passed - thing will get more tougher with every passing day

[Ultegra134]

There's a minimal recovery, almost reaching 1.03 USD/EUR (1.0269 USD/EUR to be exact), while crude oil is also showing petty signs of relief. However, can't say I'm confident enough to believe that any kind of improvement anytime soon, despite the current small, but positive signs. What's also interesting is that the cryptocurrency market is also showing similar signs, with Bitcoin surpassing $22.000, it could be coincidental, correlated or both.